Housing the tabernacle in the sanctuary is a viable option, and many bishops prescribe it regardless of the size of the church.

§ 79 § A special area can be designed within the sanctuary. Careful planning is needed so that the placement chosen does not draw the attention of the faithful away from the eucharistic celebration and its components.(Eucharisticum Mysterium 55) In addition, the placement must allow for a focus on the tabernacle for those periods of quiet prayer outside the celebration of the Eucharist.

§ 80 § Ordinarily, it is helpful to have a sufficient distance to separate the tabernacle and the altar. When a tabernacle is located directly behind the altar, consideration should be given to using distance, lighting, or some other architectural device that separates the tabernacle and reservation area during Mass, but that allows the tabernacle to be fully visible to the entire worship area when the eucharistic liturgy is not being celebrated.

The note from Eucharisticum Mysterium 55 is cited: It is more in keeping with the nature of the celebration [of the Eucharist] that, through reservation of the sacrament in the tabernacle, Christ not be present eucharistically from the beginning on the altar where Mass is celebrated.